The Autumn Budget has made some significant revisions to the definition of “personal company” which has serious consequences for investors wishing to take advantage of Entrepreneurs’ Relief when making gains from the disposal of shares or securities.
The chancellor’s Autumn Budget contained plenty of good news for businesses, encouraging investment as the country heads towards Brexit; however, the eligibility criteria of Entrepreneurs’ Relief was tightened.
With the revisions, to now qualify for entrepreneurs’ relief for any gains made from the disposal of shares or securities, the issuer of the shares must be the taxpayer’s personal company. However, the criteria as to what constitutes a personal company has changed and will affect any disposals made from 29 October 2018.
To be eligible for Entrepreneurs’ Relief, the taxpayer needs to satisfy the following:
Who is affected?
If you have your own company and hold ordinary shares with full voting rights and rights to the company’s assets on a winding-up, it is unlikely you will be affected by the change.Further changes
A further change to Entrepreneurs’ Relief is to take immediate effect for all disposals made from 6 April 2019.Incorporated in 2001, the business is an electronic network component distributor specialising in internet-related components ( cellular routers, modems and modules, antennas, sensors, data SIM cards, 2G to 5G solutions, fixed IP SIM cards, Bluetooth...
An opportunity exists to purchase the business and assets of a Mechanical Engineering Business operating in the North West of England. The Company has an established business that specialises in the repair and servicing of Electric Motors, Pumps Gear...
An opportunity exists to purchase the business and assets of a North West based temporary staff recruitment consultancy specialising in providing temporary and permanent staff to the Industrial, Technical and Haulage industries.
Business Sale Report is your complete solution to finding great acquisition opportunities.
Join today to receive:
All this and much more, including the latest M&A news and exclusive resources
Please choose your settings for this site below. For more information please read our Cookie Policy
These cookies are necessary for our website to function properly and provide you with access to all features.
These are analytics cookies that help us to improve the way our website works.
These are used to improve the functional performance of the website and make it easier for you to use.